Aneel approves regulation of the legal framework for distributed energy generation

Aneel (National Electric Energy Agency) approved in a board meeting this Tuesday (7) the regulation of law 14,300, which establishes a legal framework for distributed micro and mini generation of energy, a segment that has driven the increase in generation in Brazil, despite criticism from consumers about the cost of subsidies.

The approved rules cover technical procedures and concepts that affect these energy generation projects, such as charges for the use of the distribution network, deadlines for distributors to carry out system connection works, presentation of guarantee of faithful compliance, among others.

According to the solar energy association Absolar, this Tuesday’s approval means an important step towards distributed generation, a technology that encompasses everything from solar roofs on homes to small plants, with up to 5 megawatts (MW) of power, to supply the consumption of companies.

Sanctioned in January 2022, the “GD” law guaranteed legal certainty to the segment, while imposing a tariff on new projects.

Undertakings already in operation or that requested connection to energy distributors until January 6 of this year guaranteed, until 2045, the extension of tariff benefits, such as exemption from payment for the use of the distribution network, the so-called “Wire B”.

From now on, new GD projects are subject, among other rules, to staggered payments from Fio B, starting with a percentage of 15% from this year until reaching full payment in 2029.

One of the main points of discussion in the regulation, and which aroused great dissatisfaction among agents in the “GD” market, were details of the charge for services that previously were not paid to distributors by technology users.

Entities such as Absolar pointed out that the rules initially put in place by the regulator imposed a “triple charge” on holders of their own micro and mini-generation, harming mainly small consumers and increasing the period of return on investments.

According to the executive president of Absolar, Rodrigo Sauaia, part of the problem was solved, with the elimination of the “double charge” of the cost of availability of the distributor’s network and Wire B.

“We were able to eliminate duplicate charging, avoiding making distributed solar generation unfeasible for Brazilian society”, said Sauaia, adding that the entity will work with Congress to adjust other points it deems important in the law.

The regulation of the “GD” legal framework mobilized several agents in the electricity sector, especially in the solar market and energy distributors, who differ on the treatment to be given to technology that has been growing rapidly in Brazil since 2018.

DG brings important benefits to the electricity sector, as it uses clean energy sources, especially solar, and implies a generation close to the place of consumption. But, as users have tariff benefits for being exempt from paying some costs on their electricity bill, consumers who do not have these systems end up being burdened.

Aneel calculations released last year estimated that “GD” subsidies would cost consumers BRL 5.4 billion in 2023.

Currently, distributed generation adds up to 17 GW of power in Brazil, having become the main driver of solar power in the country.

Late last year, California, one of the places best known for its solar energy incentives, decided to reduce the credits paid to users of distributed generation, saying the change would be fairer for low-income taxpayers and still maintain a solar industry. healthy.